More relief as three UAE free zones are out of VAT scope

You all must be aware of the fact that there are a lot of free zones in UAE. all for these free zones are out of the scope of the VAT. This means that all of these do not have to pay the VAT. This is such a relief.

GOOD NEWS!

The good news is that three more free zones have been added to the zones which are free from the scope of VAT as they will not have to pay 5% VAT at all.

Total number of free zones in UAE

Now as we know that the addition of the free zones has been added in UAE so the total number of zones has increased to 23 and they are situated all over the UAE at different places.

Federal Decree Law No. (8) of 2017

This specific law tells that if a certain area is meeting certain conditions it will be considered outside the range of VAT. So, for such areas, there is no VAT imposed and they won’t have to pay any of it.

Due to new transactions, the people came to know that there is no implementation of VAT on these newly designated free zones.

To date, here is the allocation of the zones in different states in UAE;

Eight designated zones in Dubai

Five in Abu Dhabi

Three in Ras Al Khaimah

Two each in Fujairah, Sharjah and Umm Al Quwain

One in Ajman.

International Humanitarian City

This is considered to be the largest hub of the humanitarian in the whole wide world. You will see a lot of diversity in this hub as a lot of members from different organizations.

Dh225.5 billion was the total exports in 2017. This data has been taken from the Central Bank of the UAE and it also shows an increase in growth of 6.6 per cent which is quite good.

Number of free zones

UAE has a lot of free zones globally and their number is 4. Many are still under construction.

If we talk about the free zones in Dubai, we would come to know that the number of free zones in Dubai is almost 30.

As three more free zones have been added to the UAE that is not under the scope of the VAT, people are considering it to be a relief for them. this is because they will not have to pay any tax on it. so, they will be able to keep every penny they make from their business.

Free zones are always preferred by the people because no VAT is mandatory in them. This acts as a relief for them and they keep on working while keeping the whole of the money they make.

UAE is working on 10 more free zones and all of these acts will surely help UAE is becoming successful.